Does Sun Country Airlines Holdings, Inc. (SNCY) Benefit From The Air Travel Boom?

We recently compiled a list of the Top 10 Airline Stocks Benefiting From The Air Travel Boom. In this article, we are going to take a look at where Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) stands against the other airline stocks.

The aviation sector wasn’t short of optimism heading into the new year as air travel demand reached pre-covid highs and the holiday season showed promise. That optimism is now turning into reality as Delta Airlines announced its Q4 earnings result and surprised to the upside. The announcement has spurred a rally across airline stocks as expectations of other companies posting an earnings beat rise.

Delta reported improved operating margins of 12% vs 9.9% from a year ago. It improved the revenue per available seat mile from $0.1995 a year ago to $0.2004 in the last quarter. All of its international regions showed sequential improvement as revenue generated from international passengers grew at 6%. The company has also improved its guidance for the first quarter to $0.85 at the midpoint to the prior $0.76.

We now look at how this may affect other stocks across the industry.

A landscape view of a passenger and cargo airplane taking off from the airport runway.

Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY)

Sun Country Airlines offers air cargo, chartered plane, and passenger services in America as well as internationally. Its two main segments are passenger and cargo. As the broader sector is expected to benefit from the surging air travel demand, SNCY is set to be a beneficiary as well.

The stock has just hit its 52-week highs after trading sideways for most of the last year. This breakout could allow traders to benefit from the current uptrend across the sector, spurred by Delta Airlines’ impressive earnings report.

Last year, the company entered into a revised partnership with Amazon. Sun Country Airlines has operated 12 Boeing 737s on behalf of Amazon for the last four and a half years. It now operates 20 such planes according to the revised terms of the partnership. The company expects cargo flight hours to go up by over 60% in 2025, though they should then settle at an annual growth of 14% going forward.

Overall SNCY ranks 10th on our list of the to airlines stocks benefiting from the air travel boom. While we acknowledge the potential of SNCY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SNCY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.